New Homestead Exemption Offers Relief for Disabled Veterans

Texas state government is doing the right thing by offering a new tax
exemption to a group that truly deserves our respect: disabled U.S. military
veterans.

Veterans who meet the highest threshold of qualifications will be exempt
from paying any property taxes on their homesteads. To qualify for a full
exemption, veterans must be classified by the U.S. Department of Veterans
Affairs (VA) as being unemployable or having a 100 percent disability rating.
Veterans must also have received 100 percent disability compensation from
the VA. Veterans wishing to claim the exemption can begin the process by
contacting their county appraisal districts.

House Bill 3613 from the 81st Texas Legislature allows the complete property
tax exemption, which is effective for 2009 and onward. The law, however,
does not allow the surviving spouse of eligible veterans to receive the
homestead exemption. Surviving spouses do remain eligible for the exemptions
for people with disabilities and for people age 65 and older.

Another exemption is also available for disabled veterans, including those
classified by the VA as less than 100 percent disabled and those qualified
for the full homestead property tax exemption. Beginning at a 10 percent
VA disability rating, a veteran can get an exemption of $5,000 to $12,000
for any one property he or she owns. For veterans receiving the full homestead
property tax exemption, the additional exemption could be applied to non-homestead
property.

If you or someone you know is a disabled veteran living in Texas, please
learn all you can about this important property tax exemption. During these
uncertain economic times, it has true potential to help those who have
made tremendous sacrifices make ends meet.

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Veterans wishing to apply for the homestead exemption should contact their
county appraisal districts. To find information about disability ratings
or employability from the VA, call (800) 827-1000
or visit www.va.gov. Disabled veterans receiving a homestead exemption
may need to contact their mortgage lenders to adjust their escrow payments.

For more information on Texas property tax issues, including detailed
information about the homestead exemption for disabled Texas veterans,
visit http://www.window.state.tx.us/taxinfo/proptax/ or call (800) 252-9121.